Dollar Strengthens; Gold Declines

The dollar strengthened against most major world currencies Thursday. Gold prices fell.

At Republic National Bank, gold sold for $395.50 an ounce, down from Wednesday’s $402 late price.

Currency analysts said there was no particular reason why the U.S. currency moved higher during the day.

“The fundamental news was rather mediocre,” said Chris Bourdain, a trader at the Bank of America’s New York Trading Center.

Some traders sold heavily after the government reported U.S. retail sales in January fell 5.8% from December, or 0.1% lower when auto sales were excluded, but the dollar rebounded solidly toward the end of trading.

Joe Cally, an analyst at PBTC International Bank, said he believed many traders were anticipating an agreement by the five major industrial countries to stabilize the dollar against other currencies, particularly the Japanese yen and West German mark.